AeroVironment has agreed to acquire BlueHalo for approximately $4.1 billion in an all-stock transaction to establish a diversified defense technology company with a portfolio of capabilities, including uncrewed platforms, space technologies, short- and long-range loitering munitions, cyber and electronic warfare systems.
In a joint release published Tuesday, the companies said they expect the transaction to close in the first half of 2025, subject to approval by AeroVironment shareholders, regulatory clearances and other customary closing conditions.
“By uniting with AV, we are building an organization equipped to meet emerging defense priorities and deliver purpose-driven, state-of-the-art solutions with unmatched speed. Together, we remain committed to protecting those who defend us while driving the next generation of transformational advancements in defense technology,” said Jonathan Moneymaker, CEO of BlueHalo and a previous Wash100 awardee.
Delivering Defense Technologies Across Multiple Domains
The new entity that will emerge from the transaction will broaden manufacturing capacity, drive innovation and advance the deployment of defense tech platforms across air, ground, maritime, space and cyber domains in support of the missions of the Department of Defense and allied countries.
The combined company will be based in Arlington, Virginia, and is expected to generate more than $1.7 billion in revenue on a pro forma basis.
AeroVironment will integrate BlueHalo’s 10 flagship platform families and over 100 patents with its expertise in the design, development and production of uncrewed platforms and other advanced technologies. The company will also leverage BlueHalo’s portfolio to enter into key segments, such as directed energy, counter-unmanned aircraft systems and electronic warfare, to strengthen its total addressable market.
Upon the deal’s closing, AeroVironment Chairman, President and CEO Wahid Nawabi will assume the same roles at the combined company.
Moneymaker will serve as a strategic adviser to Nawabi and the combined entity’s management team.
“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV. Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defense,” said Nawabi.
All-Stock Transaction Details
AV will issue about 18.5 million shares of common stock to BlueHalo and its shareholders will own approximately 60.5 percent of the combined entity based on AV’s shares outstanding as of Nov. 18.
The equity holders of BlueHalo will own about 39.5 percent of the combined company.
BlueHalo’s majority owner, Arlington Capital Partners, will maintain a significant ownership stake in the new entity.
RBC Capital Markets and Latham & Watkins are AeroVironment’s financial adviser and legal counsel, respectively, in the transaction. Joele Frank, Wilkinson Brimmer Katcher serves as AV’s strategic communications adviser.
J.P. Morgan Securities serves as financial adviser and Goodwin Procter acts as legal counsel to Arlington Capital Partners and BlueHalo.
